Sector movers: Miners lifted as Chinese demand supports base metals
A rise in copper prices drove gains for miners on Wednesday, while utilities companies led on the downside.
Prices for copper climbed above $6,000 per tonne on the London Metal Exchange was the highest level this month, which analysts suggested was on the back of optimism that the US-China trade tariffs will not derail global growth, and on expectations that China will step up investments in infrastructure to shore up its economy.
Lower tariffs than-expected from the US appears to have had a noticeable knock-on effect for base metals, said market analyst Joshua Mahony at IG, with the rise across commodities such as copper, nickel and zinc helping drive substantial gains across the FTSE 100 miners.
"The widespread selloff in metals as a result of the recent trade spat has helped provide what looks like an attractive long term buying opportunity, thus raising the attractiveness of the mining sector."
After China's National Development & Reform Commission announced plans to ramp up investment across sectors including infrastructure and pledged to speed up construction on infrastructure projects that have already been approved, broker SP Angel noted that though spot copper price had been hit, the premium paid for the metal at the Chinese port of Yangshan rose to the highest level in almost three years as importers lock in fundamental supplies. Shanghai inventories have more than halved in around six months.
On the downside the utilities sector was hit as the shares, seen as an alternative to bonds, were sent lower as bond yields rose. National Grid was down 2.5%, Pennon fell 2.2% and Severn Trent and United Utilities both dripped 1.8% lower.
The personal goods sector was another in the red, led by falls for consumer giant Unilever and PZ Cussons.
In the background, as well as the possible impact from the trade wars, there was speculation from traders that Unilever was among those, along with Nestle and Coca-Cola, looking to make bid for GSK India's $4bn nutrition business.
Top performing sectors so far today
Industrial Metals & Mining 4,732.39 +3.77%
Mining 16,976.53 +3.50%
Banks 4,006.29 +1.85%
Life Insurance 8,095.62 +1.85%
Aerospace and Defence 5,552.18 +1.09%
Bottom performing sectors so far today
Gas, Water & Multiutilities 4,694.80 -2.10%
Personal Goods 36,747.80 -2.07%
Leisure Goods 9,016.44 -1.77%
Health Care Equipment & Services 7,555.36 -1.42%
Fixed Line Telecommunications 2,647.11 -1.15%
Market Movers
FTSE 100 (UKX) 7,328.03 0.38%
FTSE 250 (MCX) 20,499.09 0.20%
techMARK (TASX) 3,480.77 0.21%
FTSE 100 - Risers
Antofagasta (ANTO) 836.60p 5.82%
Anglo American (AAL) 1,659.00p 5.27%
Evraz (EVR) 527.80p 3.65%
Glencore (GLEN) 319.87p 3.62%
BHP Billiton (BLT) 1,602.00p 3.38%
Fresnillo (FRES) 821.80p 3.19%
GVC Holdings (GVC) 1,003.00p 3.19%
Rio Tinto (RIO) 3,727.00p 3.08%
Prudential (PRU) 1,712.30p 2.90%
Royal Bank of Scotland Group (RBS) 256.90p 2.51%
FTSE 100 - Fallers
Kingfisher (KGF) 245.90p -6.71%
NMC Health (NMC) 3,301.20p -3.92%
Rentokil Initial (RTO) 310.13p -2.93%
National Grid (NG.) 775.80p -2.45%
Unilever (ULVR) 4,138.00p -2.35%
Relx plc (REL) 1,506.00p -2.11%
Severn Trent (SVT) 1,852.82p -2.05%
Intertek Group (ITRK) 4,741.00p -1.98%
Royal Mail (RMG) 476.90p -1.79%
United Utilities Group (UU.) 692.00p -1.79%
FTSE 250 - Risers
Kaz Minerals (KAZ) 517.90p 7.45%
Ferrexpo (FXPO) 172.76p 5.15%
Polymetal International (POLY) 626.00p 4.37%
Weir Group (WEIR) 1,724.50p 4.01%
IP Group (IPO) 130.80p 3.97%
IWG (IWG) 221.60p 3.75%
Investec (INVP) 535.20p 3.72%
McCarthy & Stone (MCS) 129.80p 3.67%
AA (AA.) 122.35p 3.64%
Dixons Carphone (DC.) 168.35p 3.19%
FTSE 250 - Fallers
Greencore Group (GNC) 182.00p -4.41%
Dechra Pharmaceuticals (DPH) 2,370.00p -3.97%
Sanne Group (SNN) 639.00p -3.18%
Rank Group (RNK) 177.80p -3.16%
Cineworld Group (CINE) 309.40p -3.01%
Go-Ahead Group (GOG) 1,654.00p -2.93%
Sirius Minerals (SXX) 29.92p -2.79%
SIG (SHI) 122.30p -2.47%
Computacenter (CCC) 1,270.00p -2.46%
RDI Reit (RDI) 32.00p -2.29%